Contrasting reAlpha Tech (NASDAQ:AIRE) & MJ (OTCMKTS:MJNE)

MJ (OTCMKTS:MJNE) and reAlpha Tech (NASDAQ:AIRE) are both small-cap real estate companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Institutional & Insider Ownership

1.0% of reAlpha Tech shares are held by institutional investors. 35.9% of MJ shares are held by insiders. Comparatively, 39.6% of reAlpha Tech shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares MJ and reAlpha Tech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MJ	N/A	N/A	N/A
reAlpha Tech	-419.95%	-198.91%	-97.12%

Valuation and Earnings

This table compares MJ and reAlpha Tech”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MJ	N/A	N/A	N/A	N/A	N/A
reAlpha Tech	$4.29 million	2.17	-$17.59 million	($3.32)	-0.48

MJ has higher earnings, but lower revenue than reAlpha Tech.

Analyst Ratings

This is a breakdown of recent ratings for MJ and reAlpha Tech, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MJ	0	0	0	0	0.00
reAlpha Tech	1	0	1	0	2.00

reAlpha Tech has a consensus target price of $50.00, indicating a potential upside of 3,064.56%. Given reAlpha Tech’s stronger consensus rating and higher probable upside, analysts clearly believe reAlpha Tech is more favorable than MJ.

Volatility and Risk

MJ has a beta of -0.64, meaning that its stock price is 164% less volatile than the S&P 500. Comparatively, reAlpha Tech has a beta of -2.69, meaning that its stock price is 369% less volatile than the S&P 500.

Summary

reAlpha Tech beats MJ on 6 of the 10 factors compared between the two stocks.

About MJ

MJ Holdings, Inc., a cannabis holding company, engages in cultivation management, asset, and infrastructure development business in Nevada. It is also involved in production of cannabis related products; and provision of management services, dispensaries, and consulting services. The company is headquartered in Las Vegas, Nevada.

About reAlpha Tech

reAlpha Tech Corp., a real estate technology company, commercializes artificial intelligence (AI)-powered technologies. The company operates in two segments, Platform Services and Rental Business. The company offers and develops AI-based products and services to customers in the real-estate industry. These include reAlpha BRAIN, which utilizes a natural language processing program to scan through property data and choose the ones with a higher than expected industry standard return on investment; reAlpha HUMINT, which allows analysts to input qualitative features about a property and factor it into property evaluation; GENA to generate home descriptions; AIRE, a web-based AI application that provides data and insights about the real estate market; and reAlpha App, which allows syndicate members to acquire equity interests in the syndication LLC. It also leases short-term rental properties; and provides technical support services. The company was formerly known as eAlpha Asset Management, Inc. and changed its name to reAlpha Tech Corp. in March 2023. reAlpha Tech Corp. was founded in 2020 and is headquartered in Dublin, Ohio.